Colombo: Sri Lanka is facing the biggest economic crisis since 1948. With the deteriorating economy, the value of the Sri Lankan rupee has declined sharply against the dollar. The foreign debt on the country is continuously increasing. The prices of food items are touching the sky. People are upset due to power cut. Medicines are not even available. Sri Lanka, which is facing severe economic crisis, will now ask for a loan from the International Monetary Fund (IMF). Along with this, Sri Lanka has also prepared to take loan from Asian Development Bank (ADB) and World Bank.
Let’s know the latest updates of the economic crisis in Sri Lanka
- A 3-member advisory committee of financial experts has been formed to talk to the IMF about this. Former Governor of Central Bank of Sri Lanka Indrajit Kumaraswamy has been included in this committee. The committee has also been asked to suggest measures to overcome the debt crisis. Meanwhile, the Asian Development Bank has projected a marginal improvement in Sri Lanka’s economic growth to 2.5% in 2022.
- Amidst protests across the country against the Rajapakse government, former minister and MP Champika Ranawaka said on Thursday that the Rajapaksa family has looted the country a lot. During his tenure from 2004 to 2014, he embezzled US$19 billion.
- The government had taken a huge amount of money from the international financial markets and did not repay it on time. Now the whole country is suffering because of this. Such a crisis has come for the first time in Sri Lanka.
- Public protests against the Rajapaksa government have intensified in the country. Protesters demonstrated outside the office of Gotabaya government minister Johnson Fernando on Thursday. Women, children and specially educated youth joined this protest.
- After the opposition’s allegations, Minister Johnson Fernando has said that the President will not resign under any circumstances. The Gotabaya government is in majority and is trying to handle the situation in the country.
- Ali Sabri, who quit as finance minister just a day after his appointment, advised the government in Parliament on Thursday to address the current crisis under any circumstances. He said that the government should negotiate with the World Bank and Asian Development Bank (ADB) to take loans to remove the debt, so that the situation in the country comes under control.
- After the deteriorating situation in Sri Lanka, India is continuously helping its neighboring country. On Thursday, Tamil Nadu Chief Minister MK Stalin sought permission from the Center to send essential items like rice and essential medicines to Sri Lanka.
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